Story Cites UI's Lie and Stock Back-Dating Scandal

Allegations of insider trading always get the attention of lawyers. If they represent shareholders, they'll lick their chops. If they represent insiders, they'll start preparing a defense. But lawyers aren't quite sure what to make of research indicating regulations intended to give executives some protection against insider trading allegations in certain circumstances may be having unintended consequences. The research, done by Stanford University accounting professor Alan Jagolinzer, looked at how executives fared when they sold company stock. Given that another accounting professor, the University of Iowa's ERIK LIE, tipped the SEC off to the stock options back-dating scandal, it's not surprising the agency has taken note of Jagolinzer's work.